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* Hammerson posts loss of nearly $2.4 bln for 2020
* Shares up 5.7% as it launches asset sales
* 2021 all about disposals -JP Morgan
(Adds details, share price rise)
By Muvija M and Aby Jose Koilparambil
March 12 (Reuters) - Hammerson lost 1.7 billion
pounds ($2.4 billion) in 2020 as the coronavirus crisis knocked
the value of its malls, prompting immediate asset sales and a
longer-term debt warning.
The British mall operator said on Friday its net rental
revenue had almost halved and it had so far collected 76% of
last year's rents as the COVID-19 pandemic hit retail tenants.
But shares in Hammerson were up 5.7% at 0830 GMT after it
said it had made 73 million pounds selling the Brent South
Shopping Park and its stakes in two French joint ventures.
While Hammerson said it would meet its liabilities at least
for the next 12 months, it warned about the impact of the
coronavirus on the retail sector and broader economy.
"More adverse outcomes relative to those assumed in the
scenario modelling, could result in breaches in the Group's
unsecured gearing and interest cover ratio covenants," the
company said in a statement.
Hammerson's combined credit score, a measure of how likely a
company is to default in the next year on a scale of 100 (very
unlikely) to 1 (highly likely), was "4" as of Friday, data from
Refinitiv Eikon showed.
The company, which has a market capitalisation of 1.32
billion pounds, said it had reduced its net debt by 609 million
pounds to 2.23 billion pounds.
RETAIL TO LAG
British shopping centres are set to be fully operational by
mid-May under phased exit plan from restrictions which have kept
shoppers at home and led to widespread retail rent deferrals.
Hammerson expects the retail recovery to lag the broader
British economy given it was struggling with a shift to online
shopping and high costs even before the pandemic.
"2021 (is) all about disposals: Disposals will be necessary
to lower its LTV (loan-to-value) of 46%," JP Morgan analysts
wrote in a note after Hammerson's results were released.
The crisis proved the final straw for former competitor Intu
last year, pushing it into administration.
Hammerson's total portfolio, including premium outlets, fell
24% in value to 6.34 billion pounds during 2020.
($1 = 0.7167 pounds)
(Reporting by Aby Jose Koilparambil and Muvija M in Bengaluru;
Editing by Rashmi Aich, Patrick Graham and Alexander Smith)
